Microeconomics Exercise - Externalities

Read the article on Externalities and respond to the questions below. Submit your responses in hard copy.

1. Try to think of two positive and two negative externalities that personally affect you and list/describe them in your response.

2. Would you favor imposition of a carbon tax as a method to address global climate change? Explain

3. Would your response change if the revenue from collecting a carbon tax was used to reduce income taxes? Explain

4. If a market failure occurs, in your opinion, should government intervene, or should the market be permitted to self-correct? Explain

Attachment:- Microeconomics Exercise.rar